Just a questions, I am trying to find out what is a suitable document management system that can replace our physical file management and reasonable in price.
It's for a small law firm, currently the physical file holds all printed communication, documents, etc in a chronological order. opening the file will give you the newest and flipping back into time to the beginning of the file.
We have thousands of file based on file number. We would like the system to be integrated with Explorer if possible.. Must be used with a networked shared drive.

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We really don't do product and service recommendations, but like @ewwhite and others said you really need a specialized system for this (there are lots of them - Google Document management system & possibly tack on legal or law firm). You might be able to make due with Sharepoint (which is IE integrated) and some custom code -- if you think that's a good option you can ask implementation questions on our SharePoint site...
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voretaq7♦Nov 14 '12 at 19:52

3 Answers
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Have you considered Microsoft's Sharepoint? You can grab Sharepoint Foundation which is free. It's not as much a pure document management solution as it is a collaboration tool, but there are document/knowledge management capabilities there and it does support versioning as requested (last I dealt with it).